Ayala readies proposal for gov’t infra projects

The Ayala Group, the country’s oldest conglomerate, has joined the roster of companies that have taken the unsolicited proposal route for infrastructure projects and is now preparing its submission to the Duterte administration.

In a briefing last week, AC Infrastructure Holdings president and CEO Jose Rene Almendras said the group is ready to submit its unsolicited proposal to the government.

The group is “ready with its proposal” and would soon make the necessary announcements once it has already been submitted, Almendras said.

He declined to provide details on the nature of the big-ticket project as he expressed hope that it would be able to gain the nod of the administration which has vowed to usher in the so-called golden age of infrastructure.

Almendras hinted that their proposal is a kind of project that has never been proposed yet.

Aside from the unsolicited route, the Ayala Group is also looking at the roster of public-private partnership (PPP) projects being offered by the government.

Almendras said the country needs a lot of infrastructure to support a growing economy.

Ayala, through infrastructure subsidiary AC Infrastructure, wants to bid for the P74.6 billion upgrade of the bustling Ninoy Aquino International Airport (NAIA).

It also wants to bid for the P2.27-billion Light Rail Transit Line 2 PPP project.

However, the government’s PPP projects are facing hurdles from lawmakers questioning the projects.

For instance, during a recent hearing of the House Committee on Transportation, House Speaker Pantaleon Alvarez questioned the 30- to 35-year period for the winning bidder in the operation and maintenance of the airport development, saying that it was too long.

The five regional airports are the Bacolod-Silay, Davao, Iloilo, Laguindingan and New Bohol (Panglao) airports. The government is offering this for bid to private sector investors, on an unbundled or individual basis.

This means bidders would make a separate offer for each airport, unlike the packaging during the previous administration when the five airports were grouped into two separate tranches.

Alvarez also questioned the P2.8 billion Common Rail Station between the Light Railway Transit (LRT) Line 1 and Metro Rail Transit (MRT) Lines 1 and 7. He said the project is unconstitutional because private companies involved in the project still have to have a legislative franchise.

This after the government signed a Memorandum of Agreement with private companies such as SM Prime Holdings Inc., Light Rail Manila Corp., San Miguel Corp. and North Triangle Depot Commercial Corp.

The Duterte administration vowed to usher in the golden age of infrastructure in the country with the construction of new roads, bridges, airports and railway systems.